Ladies and gentlemen, good afternoon. I'm Wang Hua, CFO and Board Secretary of PetroChina. Here on behalf of the company, I would like to welcome you to our 2022 Q3 earnings call. First, allow me to introduce attendees from our Beijing headquarters. Mr. Huang Yongzhang, Executive Director and President of the company. Ms. Mu Xiuping, Director General of our Finance Department. Mr. Li Qiang, Deputy Director General of our International Department. Ms. Pei Ying, Deputy Director General of the Board Office. Ms. Liu Wentao, Deputy Director General of our Planning Department. Mr. Song Wenguo, Deputy Director General of our Production Operation Management Department. Ms. Zhou Guofeng, Deputy Director General of our Law and Corporate Reform Department. And Mr. Liang Gang, Deputy Chief Economist of our Board Office. Today's earnings call will include three parts: First, opening address of our President, Mr. Huang Yongzhang. Second, briefing of our Q3 performance, followed by the Q&A session. Now, we'll move into the first part, opening address of our Executive Director and President, Mr. Huang Yongzhang. Please. Dear shareholders and investors, good afternoon. I'm more than delighted to join you online. First of all, on behalf of the board, management, and all staff, I would like to thank you very much for your long-term support and attention. This year, faced with hardships and challenges, PetroChina have always maintained strategic focus and followed the deployment of our Board of Directors. We coordinated between operation and management, as well as reform and innovation, continued to optimize oil and gas industry chains, and our profitability continued to increase. Revenue, net profit attributable to parent, free cash flow, and many other operation indicators saw large increase, and our performance recorded another historical best. All major tasks have seen new headwinds and new success. First, we continued to step up E&P efforts and maintained a sound momentum in production and reserve ramp-up. We secured 17 important discoveries and 31 major progress in Sichuan, Tarim, Ordos, and Junggar Basins. We have achieved steady crude output with increase and rapid growth of natural gas domestically. For overseas operations, we further optimized layout and portfolio. Major projects saw smooth progress. Second, we further carried out the structuring and upgrading of our refining and chemical business, and worked hard to cut fuel and increase chemicals and specialty products. Our key projects, like Guangdong Petrochemical Complex and Jilin Ethylene Plant, all saw new progress, and our product mix continued to optimize. We've stayed market-oriented and profit-centered to carry out improvement in terms of our crude resource allocation, to make appropriate arrangement in terms of run rate and further cap our costs and expenditures. ...努力扩大销量，市场份额稳中有增。全企销售业务积极优化资源结构，努力控制采购成本，优化营销策略和资源配置，统筹兼顾保供保交。 Third, we further worked on fine management and improved our marketing. Refined product sales overcame challenges like declines in market demand, and further improved customer service to expand sales. Our market share saw steady increase. In terms of natural gas marketing, we optimized resource structure to contain procurement costs and improve marketing strategy and resource allocation to maintain a balance between guaranteeing supply and profitability. 四是持续推进绿色低碳转型，加快推进风光气储一体化大型基地和新能源新材料六大基地，五大地工程重点项目落地，积极开发风光地热资源丰富地区清洁电力市场，部署了一批新能源新材料项目，大庆油田星火水面光伏示范工程等十余个项目建成投产。 Fourth, we made further efforts in green and low carbon transition. We have worked on major integrated bases with wind, solar, gas, and energy storage, as well as the six major bases and five major projects of new energy and new materials endeavors. We have made active efforts to develop clean energy and power markets in areas with abundant wind, solar, and geothermal resources. We have also launched a batch of new energy and new materials projects. More than 10 projects have been completed and brought online. For example, the floating PV demonstration base in Daqing Oilf ield. 五是持续强化科技创新，加强原创技术源地建设,加大基础研究和应用基础研究力度,加速突破一批关键技术瓶颈,推進世界一流创新型企业建设,为业务发展提供支撑和引领。 Fifth, we continue to enhance R&D and work on the building of original technology incubator to enhance basic research and applied research. We have accelerated the campaign to break technical bottlenecks in terms of core technologies, so as to build a world-class innovative enterprise and provide support and guidance for business development. 六是持续深化提质增效，不断提升油气两大产业链价值创造能力，坚持谨慎投资、精准投资、效益投资，严控投资总量，提升投资管理水平。根据宏观形势变化和生产经营需要，公司董事会审议通过了业务发展和投资计划优化调整方案，将进一步夯实油气增储上产资源基础，推进炼化转型升级，加快新能源新材料业务发展。 Sixth, further efforts in quality and efficiency improvement will continue to improve the value creation capability of our oil and gas industry chains. We stick to the principle of disciplined, targeted, and cost-effective investment to cap the overall amount of investment and improve investment management. Based on macro environment as well as the realities in our production and operation, the board of PetroChina has deliberated and approved the adjustment of our business development and investment plan, which will further consolidate the resource base of future production and reserve ramp-up, and proceeded the refining and chemical sector upgrading and transformation, and also to speed up the business development in terms of new energy and new materials. 下一步，公司将密切跟踪国内国际形势，特别是市场动态、利率汇率变化，持续优化生产经营组织，深入开展提质增效和改革创新，着力防范化解经营风险，全力实现年度生产经营目标，努力为公司股东和社会创造更大价值。谢谢！ For the next step, PetroChina will closely follow domestic and international situations, as well as the market dynamics in the oil and gas market, and changes in interest rate and exchange rate to optimize the organization of our production and management, deepen quality and efficiency improvement, as well as reform and innovation, to fend off risk in our business operations and achieve the annual production and operation target. So as to create more value for our shareholders and the society at large. Thank you. Thank you, Huang Dong. Thank you, Mr. Huang. Now, we'll move on to the second item. We'll have our securities representative and Deputy Chief Economist of the board, of the board office, Mr. Liang Gang, to introduce the Q3 performance. At the same time, on the English line, we'll have Mr. Brian Xing from Hong Kong Representative Office, to introduce the performance in English. Good afternoon, ladies and gentlemen. I'll give you a brief introduction of PetroChina's 2022 third quarter results. In the first three quarters, world economy continued to grow slowly due to geopolitical tensions, inflation, rate hikes in the U.S. and Europe, and recurrent COVID-19 epidemic. The tight supply and demand balance of the international crude oil market led to a spike in crude oil prices. China's macroeconomy gradually recovered. Domestic refined oil demand declined due to sporadic epidemic outbreaks in some regions. The company implemented a new development philosophy and high-quality development requirement, pursuing progress while ensuring stability, comply with laws and regulations. We overcame challenges and coordinated epidemic prevention and control, production, operation, reform, and development, vigorously expanded our exploration and development, and ensured stable oil and gas supply. Through persistent efforts to enhance the development quality and efficiency, we continuously improved our value creation capability. In accordance with IFRS, for the first three quarters, the company continued to deliver record financial results for the same period. Revenue was CNY 2.4 trillion, up 30.6%. Operating profit was CNY 175 billion, up 40.2%. Net profit attributable to owners of the company was CNY 120 billion, up 60.1%. Basic EPS, CNY 0.66, up CNY 0.25. In the third quarter, revenue was CNY 841 billion, up 23%. Profit from operations was CNY 55.8 billion, up 53.8%. Net profit attributable to owners of the company was CNY 37.9 billion, up 71.5%. Basic EPS, CNY 0.21, up CNY 0.09 year-on-year. The following is the operating performance of each business. For the oil, gas, and new energy business, the company vigorously strengthened exploration and development, actively expanded production capacity, and strived to increase reserves and production. We continued to optimize the layout and asset structure of overseas oil and gas exploration, and firmly promoted the new energy business. We attached equal importance to production and profitability, and continuously enhanced cost control. In the first three quarters, crude oil output reached 677 million barrels, with domestic output, 577 million barrels, up 2.7%. The marketable natural gas output was 3.4 TCF, with domestic output of 3.3 TCF, up 5.1%. Oil and gas equivalent output was 1.25 billion barrels, with domestic output of 1.13 billion barrels, up 3.9%. Oil and gas lifting cost was $11.7 a barrel, up 3.3%, mainly due to the increase in operating costs, such as fuel and power costs. In the first three quarters, the sector achieved an operating profit of CNY 139 billion, significantly up 138%, or CNY 80.6 billion. In the third quarter, crude oil output reached 225 million barrels, with domestic output of 189 million barrels, up 1.3%. Marketable natural gas output reached 1.1 TCF, with domestic output of 1 TCF, up 6.7%. Oil and gas equivalent output reached 406 million barrels, with domestic output of 363 million barrels, up 3.8%. In the third quarter, the sector recorded an operating profit of CNY 56.5 billion, significantly up 105.4% year-on-year. For the refining, chemicals, and new materials business, the company adhered to market-oriented approach, enhanced coordination between production and sales, and actively controlled and reduced crude oil processing volume. We focus on lowering refined products and increasing chemicals output, with the product structure further optimized. We also enhance R&D efforts and establish new materials research institute in Japan, and the output of new materials has simply increased. In the first three quarters, processing volume was 896 million barrels, down 1.8%. Production of refined oil products was 75.75 million barrels, down 4.8%, of which gasoline down 12.4%, kerosene down 32.9%, and diesel up 10.9%. Production of chemical products was 23.5 million tons, up 3.5%. Production of ethylene was 5.5 million tons, up 15.6%. In the first three quarters, the sector recorded an operating profit of CNY 26.4 billion, down 17.6% or CNY 5.6 billion. Operating profit of refining was CNY 26.6 billion, up 32.1% or CNY 6.5 billion. Due to higher raw material cost, operating loss of chemicals was CNY 221 million. In the third quarter, processing volume was 298 million barrels, down 2.5%. Production of refined oil products was 26 million tons, down 1.8%, of which gasoline down 11.5%, kerosene down 15.3%, and diesel up 11.9%. Production of chemical products was 7.5 million tons, down 5.4%, and production of ethylene was 1.7 million tons, up 1.3%. In the third quarter, the whole sector recorded an operating profit of CNY 2.3 billion, down 67.5%. The operating profit of refining was CNY 2.6 billion, down 60.9%, and the operating loss of chemicals was CNY 309 million, mainly due to the raw materials cost increase. As for the marketing business, the company strive to overcome the adverse impacts from resurgence of the pandemic and lower market demand for refined oil products. We strive to expand sales volume and further optimize inventory management. We coordinated the development of international and domestic markets, further enhance the profitability of international trade, actively developed the integrated stations of oil, gas, hydrogen, electricity, and non-oil business, and strive to create new profit growth drivers. In the first three quarters, the company sold 110 million tons of refined oil products, down 10.5%. Domestic sales of refined oil products was 79.4 million tons, down 45.6%, and the sales of diesel up 9.8%, gasoline down 13.5%, and the kerosene down 38.9%. In the first three quarters, the sector recorded an operating profit of CNY 7.2 billion, down 17.5%. In the third quarter, the company sold 39.3 million tons of refined oil products, down 9.3%. Domestic sales volume of refined oil products was 29.1 million tons, down 4.8%, of which the sales of diesel up 9.1%, gasoline down 16.3%, and kerosene down 23.4%. In the third quarter, the whole sector recorded an operating loss of CNY 1.28 billion. As for natural gas marketing business, the company actively addressed the impact of rising imported gas costs, optimized its resource structure, strictly controlled procurement costs, attached great importance to precise marketing, expanded the scale of online sales, actively expanded the retail end user market, and vigorously enhanced profitability. In the first three quarters, the company sold 189.5 BCM of natural gas, down 4.7%, of which domestic sales of natural gas was 147.2 BCM, up 6.6% year-on-year. In the first three quarters, due to the rising procurement costs of imported gas, the natural gas marketing business recorded an operating profit of CNY 15.6 billion, down 15% year-on-year, if excluded impact of pipeline restructuring from Kunlun Energy last year. In the third quarter, the company sold 59 BCM of natural gas, down 8.5%. Domestic sales of natural gas was 43.5 BCM, up 3.9%. In the third quarter, the whole sector recorded operating profit of CNY 2 billion, up CNY 2.2 billion. The above are the company's overall operating targets for 2022, and the progress made in the first three quarters for your reference. As of the third quarter report. Thank you. …中文交替翻译的方式进行，为了使更多的人有提问机会，请各位提问不要超过两个问题，并请先通报一下您和贵公司的名称。现在开始提问。 Thank you, Mr. Liang. Now we'll move on to the Q&A session. The Q&A session will have Chinese and English consecutive interpreting. To give more people the chance to ask, each please raise no more than two questions, and please first inform you- your name and the institution you represent. Now the floor is open for questions, please. 大家好，后续提问，请在话机上按星一键排队等候，再双号键再输入一。谢谢。 Ladies and gentlemen, if you would like to ask any questions, please press star one on the telephone keypad. Press star followed by one. Thank you. 大家好，第一位有请光大证券赵乃迪。 The first question is Zhao Naidi from Everbright Securities. Please go ahead. 尊敬的郭经理，大家好，我是来自光大证券赵乃迪，非常感谢领导们给我这样一个提问的机会。那么我这边有两个问题想向各位请教。第一个问题的话呢，就是我们看到今年以来，在美元加息、人民币贬值，以及地缘政治影响的各种比较复杂的国际局面，然后全球的能源，还有这个油公司的，当然也给我们造成了很大的压力。那么我们也想请问一下，郭经理，这些复杂局势对公司的生产经营造成了何种影响？那么面对这些不确定性的因素，公司有何应对的措施？这是第一个问题。那么第二个问题的话，我们对于业绩这块也比较关注，那么想请问一下郭经理，就是我们看到前三季度的公司归母净利润同比是大幅上升，环比略有下降的原因分析如何？那么也想，请领导们帮我们一起展望一下今年全年的盈利预期，谢谢。 I'm with Everbright Securities. I would like to thank the management for giving me the chance to ask, and I have two questions. First, entering 2022, there is the RMB depreciation as well as the Ukrainian crisis. All these add to the already complex international energy landscape, and a lot of oil companies are feeling the impact already. I wonder that, how will these factors affect the operation and management of PetroChina? And what is your measures to respond? And my second question is regarding the performance of the company that we pay close attention to. We see in terms of the Q3 net profit attributable to parent, there is a large increase year-on-year and a slight decline quarter-on-quarter. I wonder the reason behind that, and what is your outlook regarding the full year profitability? Thank you. 好，谢谢赵先生。您的第一个问题呢，由我们生产经营管理部的宋文国先生来回答。 Thank you, Mr. Zhao. Mr. Song Wenguo from our Production Operation Management Department is taking the question. 好，这个今年以来啊，国内外宏观环境出现诸多超预期变化的因素，国际环境更趋严峻复杂，啊国内油价的高位震荡。 This year, we have seen a lot of unexpected changes in macro environment at home and overseas. The international landscape has become more complex and severe, with very high and volatile international oil prices. 全球天然气供需格局发生了深刻的调整，LNG现货价格保持高位运行。 The global natural gas supply and demand landscape is seeing profound adjustment, and spot LNG prices remain high. 美联储累计加息300个基点，美元指数一度突破114，创20年来新高，引发国际金融市场震荡，美元加息，人民币贬值，增加了公司外币融资成本。 The American Federal Reserve has increased interest rate by a total of 300 basis points by now, and U.S. dollar index has exceeded 114 at some point, which is a new high in the past 20 years, and it has caused fluctuation in the international finance department. The interest hike of U.S. dollar and depreciation of RMB has hiked the financing cost in foreign currency of the company. 同时也增加了进口油气成本和汇兑损失，但公司以美元计价业务的收入和利润相应增加。 Such a change has also added to our import oil and gas costs and losses in exchange. However, our revenue and profitability in terms of operations settled in U.S. dollars, has also increased. 面对困难和挑战，公司加强市场跟踪和研判，提前制定各种预案和应对措施，来保证国内的油气稳定供应。 Faced with difficulties and challenges, PetroChina has strengthened our analysis of market volatilities and made our precautions and measures in advance to guarantee the stable supply of domestic oil and gas resources. 在提升资源质量及保障能力方面，一是加快国内油气资源增储上产，大力实施高效勘探，加强老油田增产，加快新区效益建产，抓好国内油气产能建设，努力实现原油产量稳中有升，天然气产量快速增长。 First, in terms of improving the quality of our resources and our capabilities to guarantee supply, first, we speed up the production and reserve ramp-up domestically. We carried out efficient explorations, enhanced the production stabilization in mature oil fields, and speed up the cost-effective capacity building in new ones. In this way, we can work on the capacity building in terms of, in terms of domestic oil and gas production, and achieve steady with increased oil output and rapid growth of natural gas. 二是强化海外油气资源运营开发，提升投资回报。 Second, we strengthened the operation and development of overseas oil and gas resources to improve our return on investment. 三是改善进口气资源结构，加强与境外资源供应方沟通，实现进口管道气资源稳定供应。 Third, we optimized the resource pool of import gas, enhanced communication with overseas suppliers to guarantee the stable supply of imported pipeline natural gas. 四是持续推进储气库调峰能力建设，各储气库按最大能力注气，为冬季保供做好了准备。 Fourth, we continue to work on the capacity building in gas storage and peak shaving. Our gas storage facilities have been injected to the maximum capacity and preparing for supply guarantee in winter season. 在优化炼化结构，提升管理，营销质量方面，一是坚持以市场为导向，加强产销衔接，积极开展原油资源优化，合理安排加工负荷，降低原油成品油库存。 In terms of R&C restructuring and improvement, as well as working on marketing quality, first, we stay market-oriented and enhance the coordination between production and marketing to improve the resource allocation of our crude resources. We made appropriate arrangement of run rate to drive down the inventory of crude and refined oil products. 二是持续优化产品结构，大力推进减油增化，减油增特，加快炼化业务的转型升级。 Second, we further optimized our product mix, went through steam to cut fuels and increase chemicals and specialty products to expedite the transformation and upgrading of our R&C arm. 三是持续跟踪客户需求和市场变化，优化炼油产品与化工产品产销节奏，兼顾客户开发和量效提升。 Third, we closely followed the demands of our customers and market dynamics to optimize the production and marketing rhythm of refining and chemical products to balance between market development and improvement in volume and profitability. 四是积极优化天然气资源结构，努力控制采购成本，突出精准营销，扩大线上销售规模，积极拓展终端零售市场，提升创效能力。 Fourth, we made active efforts to optimize the resource structure of natural gas and contain procurement cost. We focus on precision marketing, expanded online sales to add end user retail markets, and improve profitability in this regard. 在持续防范化解各类风险方面，密切跟踪国际市场，国际形势，特别是市场动态、利率、汇率变化，谨慎使用金融衍生工具，降低汇率风险和价格风险敞口，全力防控各类经营风险。 In terms of fending off various types of risks, we closely follow international events and dynamics in oil and gas markets, exchange rate and interest rate. We prudently utilized financial derivatives to reduce risk exposure in terms of exchange rate and prices to contain all types of operation risks. 好，谢谢。 Thank you. 好，谢谢宋先生。 ...您的第二个问题呢，由我来回答。我是股份有限公司财务总监，董事会秘书王华。 Thank you, and the second question, Mr. Wang Hua, our CFO and Board Secretary, is taking this question. 第三季度，公司抓住这个宏观经济复苏，油气市场需求恢复，油价比较高的这样一个有利时机，深入推进提质增效，大力加强成本费用的控制，整个油气两大产业链是平稳运行。 In Q3, PetroChina seized the opportunities of recovery in macro economy and rebound in oil and gas demand, as well as the rather high level of international oil prices, deepened our campaign to improve quality and efficiency. Worked very hard to contain the cost and expenditure, and achieved very smooth operation of our oil and gas industry chains. 公司的价值创造能力不断提升。三季度呢，我们实现规模净利润是378.8亿元，同比增加了71.5%，这也使得我们在继一季度、上半年经营业绩创历史新高之后，前三季度的经营业绩再次创了历史新高。 Which means that our value creation capabilities is also growing. We have seen a net profit attributable to parent totaling CNY 37.88 billion, up by 71.5% year-on-year, which means that, in first half, we have achieved a historical best interim results, and the first three quarters also see historical best in terms of performance. 环比呢，我们第三季度的规模净利润环比是下降了12.6%，主要的原因呢，还是受价格的影响。 As for quarter-on-quarter, there has been a decline of 12.6%, mainly due to the prices of oil and gas products. 我们可以看到呢，国际油价实际上在七月、八月、九月，出现了一个三连跌的一个情况。 We can see that in July, August and September, international oil prices recorded decline in three consecutive months. 公司的原油结算价格，三季度环比二季度呢，也是有一个比较大的下降。 As for the realized oil prices of PetroChina, there has been a rather large decline, Q3 on Q2. 在成品油价格方面呢，整个三季度，7、8、9三个月，国家的成品油价格是五降一升，累计下调了汽柴油都将近 CNY 1,100 一吨。 As for refined oil products in the three months of the third quarter, according to the national pricing policies, there has been 5 declines and 1 increase, which totals about 1,100 CNY per ton decline for both gasoline and diesel. 除了价格下降呢，还有是有些材料啊，燃料成本上升啊，还有市场影响，呃，也都是造成我们三季度效益环比有所下降的原因。 Besides the sales prices, there has also been rising costs of some fuel, power, and materials. All these factors contributed to the decline of quarter-over-quarter performance. 第四季度呢，预计中国经济将呈这个回稳向好的态势。其实呢，从这个统计局发布的数据来看，三季度呢已经在向好。我们一到九月国家GDP增长是3%，比上半年的增速快了0.5个百分点。 As for Q4, we expect that Chinese economy will back on the track of steady and sound growth. Actually, according to the National Bureau of Statistics, in Q3, it is already showing the trend. The January to September, GDP growth was 3%. That is already half a percentage point better than the H1 statistics. 预计呢，第四季度的成品油还有天然气的需 求啊，同比都会保持增长，油气价格也会在比较高的这个位置来运行。 In Q4, we expect that refined oil products and natural gas will both see very sound prices year on year. 公司呢，将继续优化油气两大产业链，深入推进提质增效，加强成本费用管控，努力完成全年生产经营目标，为各方股东创造更好的价值。谢谢！ The company will continue to improve our oil and gas industry chains operations, and deepen the campaign of quality and efficiency improvement, enhance our cost control on various fronts to achieve our annual targets and create greater value for our shareholders. Thank you. 谢谢管理层的回答。大家好，下面一位有请瑞士信贷 Horace Tse. The next question is Horace Tse from Credit Suisse. Please go ahead. 各位管理层，下午好，谢谢，我这个提问的机会。我这边有两个问题关于天然气板块的情况。那第一个，三季度的进口气亏损的情况，以及里面的退税金额，大概，管理层能不能分享一下，这个数字是多少？然后第二个问题就是说，我们马上要进入到这个取暖季，那想请问一下，这个我们今年冬季的天然气调价的情况，大概是怎么样的一个幅度？好，谢谢。 好，谢谢谢先生。我是中石油财务总监董秘王华，由我来回答您这两个问题。 The questions regarding Q3 import gas and profitability, as well as the tax refund. Can the management share some light on these figures? Also about the heating season pricing mechanism of the natural gas. Mr. Wang Hua is taking the both questions. 第一个问题呢，关于这个进口气的问题。我们三季度公司进口天然气是209.4亿方，整个进口天然气亏损了89.2亿元，退税是35.2亿元。 In Q3, the total natural gas imports 20.94 BCM, with a loss of CNY 8.92 billion, and tax refund CNY 3.52 billion. 这个主要原因呢，就是我们这个进口管道气啊，大部分都是挂钩这个9-12个月之前的国际原油价格。那么随着这个国际油价的上涨，我们今年的进口气成本啊在不断的攀升。但是呢，门站价格，国家门站价格并没有进行相应的调整，这是导致我们进口气亏损的一个，最主要的原因。 Since the pipeline natural gas import is indexed to international oil prices nine-12 months back. With the increase of international oil prices, there is a hike in the import natural gas cost. However, the city gate prices, according to the government policy, remain unchanged. Therefore, that is contributing to the loss making in import natural gas business. 对于全年的进口气的盈亏情况呢，我们预计啊，因为现在，四季度呢，天然气的消费肯定是要同比要增长的，但是现在国际上的这个气价，尤其是现货LNG的价格波动是比较大的。 As for the full year outlook, we believe that in Q4, the natural gas consumption is going to increase. However, the international gas prices, especially the spot LNG, they are both seeing a lot of volatility. 我们主要通过这个资源端和市场端两个方向来控制这个进口气的亏损，提升天然气产业链的效应。 We will work on both the resource end and the market end, to cap the losses in import natural gas business, and to improve the profitability in this industry chain. 在资源端呢，首先就是加大国产气的增储上产的力度。从我们刚才Q的数据中也能看出来，我们前三个季度啊，国产气同比增加了5.1%。 On the resource end, of course, we will continue to boost reserve and production of natural gas domestically. Just now, our presentation has shown that in the first three quarters, the natural gas production within China increased by 5.1%. 资源端的第二个方法呢，就是多渠道啊，低成本地筹集这个，更有竞争力的资源，也包括呢，我们会采取套期保值这些手段啊，来降低资源的成本，对冲资源价格上升的风险。 And second, we will procure natural gas resources from diverse channels to reduce the cost. We are also going to use some hedging tools to mitigate the risk of rising costs and contain such losses. 那么在市场端呢，主要也是两个方法吧，一个呢，就是把我们的资源啊向高端高效市场倾斜。 As for the marketing end, there are also mainly two fronts to work on. First, we will favor high-end and lucrative markets with more resources. 第二个呢，就是利用线上交易啊这些手段来发现天然气的真实价格，来提升公司的这个效益。 ...And second, we can employ measures like online auctions to discover the real prices of natural gas and to improve value in this way. 总之呢，我们会采取多种手段，资源端、市场端同时发力，来实现我们保供和保效的统一。 Overall speaking, we will work on many fronts, both on the resource end and the marketing end, to strike a balance between guarantee supply and guarantee profitability. 您的第二个问题呢，就是关于天然气实现价格的问题。那么公司呢，始终啊，严格执行国家天然气的这个价格政策。 As for your second question regarding the realized gas prices, PetroChina has always adhered strictly to the natural gas pricing policy of the government. 今年冬天呢，我们也将继续加强市场供需形势的研判，制定合理的天然气销售策略，啊通过签订合同等方式，保证资源的平稳供应，努力提升创效的水平。 This winter, PetroChina will further enhance our analysis of market supply and demand landscape to make appropriate natural gas marketing strategy accordingly. Besides guaranteeing stable supply, we'll also work on the efficiency and profitability. 好，谢谢。 Thank you. 非常感谢管理层的回答。大家好，下一位有请花旗银行，石卓恒。The next question is Toby Shek from Citibank. Please go ahead. 喂，大家好，先恭喜，这个公司取得第三季度蛮好的一个成绩。那边有两个问题，第一个问题是关于这个炼化销售这个，盈利的一个下降的一个情况的。我们在第三季度看到一个比较明显的一个下滑，然后就想从管理层这边了解一下，我们现在怎么去判断第四季度这个炼化跟销售这边的一个，盈利情况，对在这个第四季度。另外一个问题是关于，就是前一阵子我们有看到，就是，政府这边有发出更多的一个，成品油出口配额，然后... 但最近我们也看到一些新闻，就说，为了确保国内的一个柴油的供应，所以其实也取消了一些，就是可能十月底到十一月的一些出口的安排，就想从管理层这边看一下，就说是不是有这样的一些情况，然后国内的这个，柴油的供应是否现在可能比较紧缺的这种情况？所以就这两个问题，谢谢。 好，谢谢。 I have two questions. First is regarding the R&C sector. In Q3, we see a notable decline in terms of performance in this sector. I wonder what is your outlook about Q4? And my second question is regarding export quota. A while ago, we see that there has been news about the government releasing some export quota. However, there is also saying that in November, some of the diesel export quota will be canceled due to the tight supply of diesel in domestic market. Can the management confirm this, these speculations? 好，您的第一个问题呢，由我们财务部的穆秀萍女士来回答。第二个问题呢，由我们生产经营管理部的宋文国先生来回答。 Miss Mu Xiuping from our Finance Department is taking our first question, and Mr. Song from our Production Operation Management Department is taking your second. 你好，我们公司炼油业务呢，三季度经营利润是环比下降了 CNY 100 亿，那么主要有以下几个方面的原因。 The refining sector has seen a quarter-on-quarter profitability decline of CNY 10 billion, and mainly due to the following reasons. 第一呢，是刚才王总也讲到，原油价格持续下降，7、8、9连续下降，那么整个第三季度环比下降了$6/桶，导致汽柴油的毛利空间收窄。 Just as Mr. Wang Hua mentioned, the crude prices in the three months of Q3 has seen three consecutive declines, down by $6 per barrel, and that caused the narrowing gross margin of gasoline and diesel. 第二个原因是受国内疫情形势的影响，国内成品油市场消费下降，那么整体上汽油的产量出现了下降。 Second, there is the COVID situation domestically and a lower consumption in the domestic market, and that has caused a lower production of our gasoline. 化工业务三季度出现了亏损，主要原因还是原材料成本的上涨。 As for our chemical operations in Q3, there has been loss-making and mainly due to the prices changes of feedstock. 同时呢，受市场影响，主要的产品价格下降，导致毛利空间收窄。 Also in the market, there are lower prices of the products that contribute to the narrowing of gross margin. 销售业务的利润环比下降，跟炼油业务的原因类似，主要是第三季度受疫情的影响，那么市场这样。 In the marketing operations, there have been similar factors. Due to the COVID-19 resurgence, we see a weak demand in the refined oil market, and gasoline and diesel prices- 市场形势，公司主动调整，强化运行，调整结构，降低成本，那么保证了油气两条产业链的平稳运行。 Faced with such a market realities, the company improved operations, restructured its business, and capped the cost of production to ensure the smooth operation of oil and gas industry chains. 预计四季度，国家也会逐步地加大经济依赖的措施力度，同时呢，内需也将有所改善。预计炼化业务能够实现盈利回升。 In Q4, we expect that the state government will deliver stronger stimulus package in terms of economic policies, and domestic demand will recover. Therefore, we estimate that in Q4, the refining and chemical sector will see better performance and profit. 销售业务呢也会抓住需求回暖，市场对成品油市场这个有效的时机，落实各项提质增效的措施，努力能够实现扭亏为盈。 As for our marketing operations, we will see the opportunities of recovery in market consumption and state policies to straighten out the refined oil product market, and we believe that we will turn a profit in the fourth quarter. Thank you. 下面好，由我来回答第二个问题。 Mr. Song is taking your second question. 前一段時間啊，國家下發了，增發了1,500萬噸的成品油出口配額。 A while ago, the state policy has added export quota of 15 million tons. 再给我们的中石油呢，是增加了495万吨的成品油出口配额。 For PetroChina, there is an increase of export quota totaling 4.95 million tons. 因为这个成品油出口啊，本来就是调整国内的供需余缺的。 Exports of refined oil products were meant to adjust the supply and demand landscape within China. 所以今年以来呢，国内受疫情的影响，汽油和航煤销售不及预期。 This year, due to COVID-19 resurgence, the sales of gasoline and aviation kerosene were weaker than expected. 所以我们在安排出口的这个量上，汽油和航煤的出口量要稍微大一些。 Therefore, we arranged slightly higher export of gasoline and aviation kerosene. 而柴油呢，主要是满足国内的供给。现在目前呢，国内的柴油价格到位率基本上都是100%。 As for diesel, it's supposed to first satisfy domestic demand, and diesel prices have been fully hyped as well, as the policies shall allow. 目前呢，国内呢，受经济回暖的驱动，柴油的需求还是比较旺盛，但是我们的供应是没有问题的。到目前为止，我们的柴油库存比年初还是高的，还是有所增加的。 Due to the economic recovery in China, there is a rather sound, booming demand for diesel in China, but we can fully satisfy the demand with our supply. Actually, compared to the beginning of the year, our diesel inventory is actually higher right now. 下一步呢，我们如果国内的需求再增加，我们还是有调节手段的。这主要是因为我们目前的加工负荷还没有实现满负荷生产，所以呢，在我们增加加工量，炼厂的产能上还是有空间的。 As for the next step, if diesel demand continues to increase, we will have measures to respond and adapt to the new situation. For now, our run rate hasn't fully reached the original capacity, and we do have the potential to increase our processing volume and add production in this regard. 另外一个，在产品结构调整上，我们还是有手段的。 We can also adjust our product mix. 我们结合化工产品的市场情况，还是有办法。 We can also adjust the product mix in terms of chemicals or fuels. A while ago, there was this booming demand of chemicals, so we cut reduce the yield of gasoline and increase diesel in turn. 那么满足国内的供给啊，就我们已有市场份额的供给是没有问题的，这个请放心。谢谢！ As for guaranteed supply, we can fully provide the supply to our existing market share, and you can rest assured. Thank you. 谢谢穆女士，宋先生。由于时间关系，我们现在有请最后一个提问。 Thank you for the answer. Now, in the interest of time, we can have the last questioner, please. 谢谢，最后一位提问者是来自海通证券的胡欣。The last questioner is Hu Xin from Haitong Securities. Please go ahead. 各位管理层，领导好，然后我是海通证券的胡欣。那我这边主要是想请教两个问题。那首先第一个的话就是，因为我们也看到今年整个市场环境也发生了一个比较大的一个变化，那在目前这种高油价、能源转型和这个疫情的影响之下的的话，公司对于各项业务会做出哪些调整？就包括像这个全年的这个资本开支，是不是会因为这个高油价而调整？然后在各个领域，包括像这个油气以及新能源领域的这个资本开支，怎么去进行一个分配。那第二个问题的话，就想请领导介绍一下，就是，公司最近的这个绿色低碳转型以及新能源业务的一个最新的一个进展。谢谢！ I have two questions. First, given the changes in the oil and gas market with high oil prices, energy transition and COVID-19 resurgence, how will PetroChina adjust its various operations, for example, its CapEx? How do you plan to allocate CapEx between oil and gas business and new energy investment? My second question is about your green and low carbon transition and some of your latest progress in terms of new energy business. 谢谢胡女士，您这两个问题呢，由我们发展计划部的刘文涛女士来回答。 Thank you for your question. Now, Miss Liu Wentao from our planning department is taking both your questions. 你好，第一个问题呢，关于公司的业务发展的话，今年的话，公司已经做了调整计划，我们今年的资本开支比年初计划是有所增长，全年呢，比去年也有所增长吧。重点呢，一个呢是勘探开发业务，还是加强我们的资源的勘探。我们今年在地震上，就在预探上的工作量是比往年增加得比较多。所以说呢，今年的勘探的效果也比较好。第二个方面呢，就是油气产能建设。 Oh, sorry, 你先说。 Thank you for the question. We have already made adjustment to our, to our investment plan, and now our plan is higher than the beginning of the year, and the CapEx plan is also higher than previous years. First, in terms of E&P, we have allocated more investment into the exploration of resource will be higher than previous years, and it will help to consolidate resource base, and they are also seeing very good results. And second, we are also working on capacity building. 我们在这个产量上的话，今年预计比年初，油和气都有所增长。 In terms of production, we believe that oil and gas will both be higher than planned earlier this year. 同时，那么从下半年开始吧，也在为明年的油气产能建设和明年的油气产量上产，也提前部署了一些工作量。 In the second half of the year, we are also making preparations for production, ramp up and capacity building projects of next year. 另外业务上呢，公司还是在积极地推动转型升级。我们目前呢，这个除了广东，还有，吉化乙烯已经开始启动，已经在部署新的，广西乙烯，以及我们两个新的乙烷乙烯，前期工作也在加紧推进。 Refining and chemical sector, we are still working on the transformation and upgrading campaign. We have already launched the Guangdong Petrochemical Complex and Jilin Ethylene project. We are also planning for the Guangxi Ethylene project as well as, two other ethane to ethylene projects. 在资本支出上呢，总体上我们油气新能源这块，上游业务大概应该占到公司的75%，炼化的话占到15%左右，销售，两个销售占到7%-8%吧。 As for the allocation of investment, oil and gas and new energy will account for about 75%, refining and chemicals 15%, and the marketing of oil and gas about 7%-8%. 另外一个，我们在油气勘探开发上增加了，特别是加大了天然气的投入。目前我们的油和气的开发投入的话，大概是50-50吧。 In terms of exploration, we have put more focus on natural gas. In terms of development, it's about 50-50 between oil and gas. The proportion of natural gas has increased by 10%-15% compared to previous years. As for your second question regarding green and low carbon transition, the company has accelerated its pace on this regard. We have put in tremendous efforts to secure wind and solar resources, and we are seeing very good results. As for the specific implementation and delivery of these projects, the company is taking a very prudent manner. For wind and solar, we are still at the stage of clean alternatives, and we are focusing on, we are focusing on projects in Western and Eastern China, where the grid connection has enough capacity to accommodate these new energy power. Our first at-scale photovoltaic project in Yumen has recorded a total of CNY 30 million in terms of profits from Q1 to Q3 this year. PetroChina is also working on geothermal resource development in the Bohai Bay area, and we have been working on the CCUS full industry chain demonstration bases in northwestern China and northeastern China. Our target is to carry out carbon dioxide sequestration of over 1 million tons this year. For now, the demonstration bases mainly focus on the reserve of technologies and its further implementation and expansion will be based on the carbon taxing policies of the government. For hydrogen energy, PetroChina mainly eyes the technical reserve. In the next few years, PetroChina will further increase investment into green and low carbon undertaking to expedite our transition. Thank you. Thank you for the answer, and I believe that concludes our earnings call today. If you have further questions, you are more than welcome to post to our investor inbox, and I look forward to meeting you again. Thank you.